CALGARY, ALBERTA--(Marketwired - Jan. 5, 2017) - International Frontier Resources Corporation ("IFR" or the "Company") (TSX VENTURE:IFR)(OTCQB:IFRTF) is pleased to announce the closing of an Account Performance Security Guarantee (APSG) facility of $882,050US with Export Development Canada ("EDC"). The APSG facility ("Guarantee Facility") is provided as 50% of a performance bond issued by joint venture company Tonalli Energia ("Tonalli").
"Having EDC as a financial partner is an important step in the ongoing growth of IFR and we look forward to building on this strategic relationship," said Steve Hanson, IFR's President and CEO. "IFR is honored to be the first Canadian oil and gas exploration and production company to be backed by EDC in Mexico."
"IFR's early success in Mexico provides a great example of the world-class expertise that Canada's junior oil and gas companies have to offer in emerging markets," said Mark Senn, Regional Vice-President, Western Region, EDC. "With the energy reforms taking place in Mexico right now, we believe there are tremendous opportunities to be had in that sector, and IFR has just proven that Canadian companies have what it takes to compete and win in the market."
On August 25, 2016, Tonalli Energia ("Tonalli") met all the terms and conditions and signed a license contract with the Mexico Comision Nacional de Hidrocarburos (CNH) for the Onshore Oil and Gas Development Block 24 ("Tecolutla"), granting Tonalli the right to develop and produce hydrocarbons. Tonalli Energia is a Mexican company with the share ownership split equally between IFR and Mexican petrochemical leader Grupo Idesa.
As required by the CNH, Tonalli had secured from a Mexican institution a US$1,764,100 performance bond toward the guarantee of performance of the minimum work programs. Upon completion of the minimum work program, the performance bond will be returned.
The Tecolutla Block was awarded to Tonalli as part of the first round and third call of Mexico's oil and natural gas "mature fields" bid round ("Round 1.3"), the first in almost 80 years. Each of the blocks offered in Round 1.3 attracted multiple bids. Please see IFR's news release of May 12, 2016.
About Export Development Canada
EDC helps Canadian companies go, grow, and succeed in their international business. As a financial Crown corporation, EDC provides financing, insurance, bonding, trade knowledge, and matchmaking connections to help Canadian companies sell and invest abroad. EDC can also provide financial solutions to foreign buyers to facilitate and grow purchases from Canadian companies.
About International Frontier Resources
International Frontier Resources Corporation (IFR) is a Canadian publicly traded company with a demonstrated track record of advancing oil and gas projects. Through its Mexican subsidiary, Petro Frontera S.A.P.I de CV (Frontera) and strategic joint ventures, it is advancing the development of petroleum and natural gas assets in Mexico. The Company also has projects in Canada and the United States, including the Northwest Territories, Alberta and Montana.
The Company's shares are listed on the TSX Venture, trading under the symbol IFR and on the OTCQB under the symbol IFRTF. For additional information please visit www.internationalfrontier.com.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility or accuracy of this release". The Company seeks Safe Harbor.